Elizabeth and Fred operate a retailing business as partners. The partnership is registered for GST and the figures are exclusive of GST. The partnership records for the financial year ending 30 June 2017 disclose:

Gross receipts from trading	$860,000
Purchases of trading stock	$305,000
Salaries paid to the partners	$30,000 each
Superannuation contributions for Elizabeth and Fred	$25,000 each
Superannuation paid for employees	$64,000
Interest paid to Elizabeth on her capital contribution	$3,000
Interest paid to Fred on his capital contribution	$2,000
Interest on a cash advance made to the partnership by Elizabeth	$2,000
Salaries and holiday leave paid to employees	$60,000
Fringe benefits tax paid by the partnership	$2,300
Other general and specific deductions	$123,400

 

Other information relating to the partnership is as follows:

1. Elizabeth and Fred share partnership profits in the ratio of 50% each.
2. The partnership chooses to use the capital allowances and trading stock provisions for SBE’s.
3. Trading stock on hand 1 July 2016 - $130,000. Trading stock on hand 30 June 2017 - $140,000
4. A capital gain of $5,000 was made on a partnership asset that had been held for 2 years.
5. The opening general small business entity pool was $120,000. During the year $24,500 of assets were added to that pool.
6. A $12,520 fully franked dividend from an Australian company was paid to the partnership.
7. The fringe benefits tax was paid in respect of a benefit provided to one of the partnership’s employees.

In addition to the partnership details provided, Elizabeth’s personal records disclose:

• Gambling winnings $2,400
• Fully franked dividends received $7000
• Gross salary paid as a part-time instructor of $15,000. The employer deducted $5,000 as PAYG withholding.
• Elizabeth purchased a calculator for $250 for her classes that she ran as an instructor. She also paid $500 for the annual membership of a professional association.
• Elizabeth maintains her elderly mother and her mother’s adjusted taxable income for the year was $548.
• Elizabeth does not have private hospital insurance.
  
• Elizabeth received a net dividend of $9,000 from a shareholding in a foreign resident company located in the US. The payment summary issued by that company showed that $1,000 had been withheld at source.
• 
  
• REQUIRED:
• Calculate the net partnership income for the 2016-17 financial year.
• Determine the distribution amounts to each of the partners based on your determination in part (i) above.
• Determine Elizabeth’s income tax liability including the Medicare levy for the year ended 30 June 2017 and calculate her refund due or additional tax payable based on your previous calculations.